Daily Chemical Reactions

Sprout In The Thicket – Global Ammonia Markets To Stay Strong Relative to Peers, Face A Sunny Outlook
September 22, 2022
Commodities Mentioned:
Plastics (PVC, PP, PE, PU, PC, PET, etc.), Clean Energy Minerals, Carbon Dioxide, Hydrogen, Natural Gas/NGLs, Crude/Naphtha
Companies Mentioned:
Nutrien, CF Industries, Yara, LSB Industries, H.B. Fuller, Celanese, DuPont, ExxonMobil, BASF, Toyo Ink, Enbridge, BP, Gunvor, Adnoc, Aramco, Repsol, Neste, Marathon Petroleum, Air Products, Air Liquide, Chevron, Keppel Infrastructure, Petrochina, Uniper, Chemours, Bachem, Saint-Gobain, Rohm, NextChem, Novoloop, Rio Tinto, Henkel, Australian Potash, Cummins, NIS, W. R. Grace, Walmart

Daily Chemical Reaction

Sprout In The Thicket – Global Ammonia Markets To Stay Strong Relative to Peers, Face A Sunny Outlook

Key Points:

  • We think the global ammonia market will stay tighter for longer than most other chemical chains, and we discuss myriad factors that are in its favor long term.
  • Brent Crude and Ex-US naphtha values have increased relative to US natural gas and USGC ethane WoW – a plus for US chemical producers at the feedstock level.
  • We take a positive view of H.B. Fuller price hike initiatives that were more aggressive and early than many peers, per our view, and highlight risks surrounding Celanese.
  • We think the global hydrogen market will grow considerably through 2050, and we discuss why most zero-emission supply chain targets face significant challenges.
  • We discuss KB Home 3Q22 results and our near-term concerns with housing demand as negative indicators, and we highlight the movement upwards in US interest rates.

See PDF below for all charts, tables and diagrams

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